Ride-share service Uber legalised in NSW

Controversial ride-sharing service Uber is set to become legal in NSW.

From midnight on Thursday Uber drivers will have to pay a $45 licence fee, undergo criminal checks and have their cars checked for safety after the Baird government decided to regulate the online service.

A $250 million adjustment package will be established to compensate taxi and hire car licence plate owners.

The state’s perpetual taxi plate holders will receive $20,000 per plate for a maximum of two plates.

Related reading

The government will also slash licence fees and repeal more than 50 “red tape” regulations to help the industry adjust.

The changes, which are expected to generate $30 million in benefits for the industry each year, should have flow-on effects for customers, Transport Minister Andrew Constance said.

“Fares in a competitive market will adjust and be more affordable as a result of us stripping out 50 pieces of red tape,” he said.

Post by Mike Baird on Wednesday, 16 December 2015.

General manager of Uber in Australia and New Zealand, David Rohrsheim, welcomed the announcement.

“This important step forward is an incredible reflection of the way Sydneysiders have embraced ridesharing over the past 18 months,” he said in a statement.

“Thanks to the support of half a million Sydney uberX riders and over 5500 driver-partners, the government has recognised your right to choose how you get around your city and to access flexible work that fits around your life.

“Ridesharing is not only revolutionising the transportation status quo but also helping make Sydney a more economically vibrant, better connected and more sustainable city.”

Liberal Democrat Senator David Leyonhjelm said Sydneysiders were the big winners from the government’s announcement.

“Transport is a huge problem in Sydney, and making Uber legal will help locals and tourists alike,” he said.

“I encourage the NSW Government to avoid tying up occasional Uber drivers in red tape and to now look at other areas of over-regulation, such as the lock-out laws in Kings Cross, and Airbnb.

Related reading

“The pressure is now on the other states. They are going to look like backwaters in comparison to the ACT and NSW, with tourists made to feel like a criminal just for sharing a ride.”

The ACT became the first state or terroritory in Australia to make Uber legal from October 30.

“This taxi tax will see all consumers pay more to compensate an industry that refused to innovate or improve its customer service.

“In the long term, the reforms will ideally offer more choices for consumers when trying to get from A to B which are safe and competitive, but it’s disappointing to see all consumers pay extra as a gift for taxi licensees.”